1.1 	A bill for an act
1.2 	relating to transportation; providing for funding of
1.3 	transportation with transportation certificates of
1.4 	assignment; proposing coding for new law in Minnesota
1.5 	Statutes, chapter 161.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. [161.075] USE OF TRANSPORTATION CERTIFICATES.
1.8 		Subdivision 1.Applicability. The commissioner must fund
1.9 	all state highway and transit infrastructure projects with
1.10 	transportation certificates, as provided in this section.
1.11 		Subd. 2.Use and form of certificates. Each
1.12 	transportation certificate issued must bear the state project
1.13 	number to be funded through the certificate.  The transportation
1.14 	certificate must assign the equity rights of the project to a
1.15 	state-chartered bank determined under subdivision 3.  The
1.16 	certificate must reserve the user rights for the state.  The
1.17 	certificate must be signed by the commissioner of transportation.
1.18 		Subd. 3.Acceptance and monetization by state-chartered
1.19 	banks. (a) The transportation certificates must be assigned to
1.20 	and be accepted by all state-chartered banks in an alphabetical
1.21 	order by name.
1.22 	(b) Each state-chartered bank, using its accepted abilities
1.23 	to monetize assets and create money in book-entry form, shall
1.24 	establish an asset monetization "pass-through" account and shall
1.25 	deposit the certificate's stated value into that account, as an
2.1 	asset to the bank, thereby monetizing the bid value of the
2.2 	project.
2.3 	(c) Each bank, after monetizing the bid value of the
2.4 	project as an asset free of debt, shall debit the money out of
2.5 	the bank's asset monetization "pass-through" account and shall
2.6 	credit the money to the state's transportation account
2.7 	electronically.
2.8 	(d) The state shall then debit the money out of its
2.9 	transportation account and credit the money to the contractor's
2.10 	bank account according to the terms of the contract with the
2.11 	contractor.
2.12 		Subd. 4.Direction to auditors. Auditors of state banks
2.13 	shall deem the transportation certificates to be assets of the
2.14 	bank and shall not deem them or the money created by them to be
2.15 	liabilities of the bank or of the state.

2.16 	Sec. 2. EFFECTIVE DATE.
 2.17 	Section 1 is effective July 1, 2005, and applies to
2.18 	projects upon which work begins on or after that date.